The Case of the Test Market Toss-up Essay

956 Words Jan 15th, 2011 4 Pages
The Case of the Test Market Toss-up In this case, the top management put the new frozen dessert--- Sweet Dream on ice; however, the product manager felt it was not a correct decision and tried to persuade the top managers to reconsider. The company of Paradise Foods didn’t realize the threat on LaTreat and the opportunities on Sweet Dream. They didn’t embrace the concept of using analytical marketing research based on computer technologies as the premise of the right decision. The issues are:
1. The research data on Sweet Dream seemed to steal the share from LaTreat.
2. The top managers didn’t really understand the meaning of the analytical numbers which Bill got from the marketing research and only considered that the return was
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LaTreat and Sweet Dream were different products that the ingredients and functions are different. Although there was some shifting from LaTreat to Sweet Dream, the two products are not the cannibalization that if Sweet Dream is facing to the present market which would be the product development strategy or if it is facing to the new market which would be the diversification strategy. Besides, the company had used the inappropriate promotion which brought the customers into the price-sensitive types that would decrease the value of brand and the loyalists. Paradise Foods has used the advanced computer-based research services to do the marketing analysis of Sweet Dream and it also has planned two different areas with different advertising and promotion strategies. However, the Sweet Dream product manager, Bill has made a complex report in 40 pages which has lead to the little interest and patience for the top managers to read and understand; and the committee only see that Sweet Dream didn’t produce the revenues they want. Furthermore, Bill hasn’t analyzed the situation of LaTreat at the beginning which would make the top managers recognize the threat of LaTreat and support the necessary and feasibility of the new product. Besides, if the company wants to try another concept of the new product, it will take

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